Gibraltar Industries, Inc. · NASDAQ:ROCK
Gibraltar Industries — Non-Deal Roadshow (August 2014)
33 slides from Gibraltar Industries's roadshow presentation, August 2014
Slide 1: Investor Meetings August 2014
1 Investor Meetings August 2014
Slide 2: Safe Harbor Statement
Safe Harbor Statement 2 Certain information set forth in this presentation, other than historical statements, contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that are based, in whole or in part, on current expectations, intentions, est
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures 3 In addition to results presented in accordance with U.S. GAAP, this presentation and related tables include certain non-GAAP financial measures. We have provided reconciliations of those measures to the most directly comparable GAAP measures, which are available in the
Slide 4: Investment Thesis
Investment Thesis 4 MARGIN EXPANSION ON END-MARKET RECOVERY • #1 share in key building product categories • Later stage recovery in Residential R&R and Industrial markets • Potential to leverage sales and profit growth from end market recovery • Low leverage and strong liquidity • Record of successf
Slide 5: Gibraltar at a Glance
Gibraltar at a Glance 5 LEADING MANUFACTURER OF BUILDING PRODUCTS • Serving end markets of residential and nonresidential repair & remodeling, industrial facilities, manufacturing and public transportation infrastructure Industrial & Residential • #1 share in our product categories Infrastructure 48
Slide 6: Market Position: Industrial & Infrastructure Products Segment
Industrial & Infrastructure Products Segment 6 EXPANDED FOCUS Expanded Metal & Engineered Bearings & Bar Grating Perforated Metal Joints, Sealants •Oil, Gas, Mining •Mining •Bridge Construction •Discrete & Process •Transportation •Elevated Highway End Markets Manufacturing •Petro-chemical Constructi
Slide 7: Market Position: Residential Products Segment
Residential Products Segment 7 GROWING RESIDENTIAL PENETRATION Rain Dispersion, Roof & Foundation Trim, Flashing, Mail Storage Ventilation Products Building Accessories (single & cluster) Soffits •New Build •New Build •New Build •New Build Markets End •Repair & Remodel •Repair & Remodel •Repair & Re
Slide 8: Blue Chip Customer Base
Blue Chip Customer Base 8 LOW CONCENTRATION Residential Industrial & Infrastructure Market Profitability Financial At a Glance MarketPosition Position Growth Outlook Improvement Performance
Slide 9: Broad Geographic Coverage
Broad Geographic Coverage 9 PRODUCTS SOLD IN 57 COUNTRIES ON 6 CONTINENTS Bulgaria Poland Austria Belgium Netherlands Czech Sweden Canada Denmark Republic Romania Bosnia Slovak Norway Germany Republic Latvia Turkey Finland Iceland United Slovenia Kingdom Croatia Mongolia Ireland France Saudi Arabia
Slide 10: Growth: Generating Wealth
Growth 10 GENERATING WEALTH = $( AR-AC) Size & Rate Average Return Average Cost of Change or WACC Income Statement Acquisitions Business Model Capital Structure New Products/Solutions Operational Excellence Balance Sheet New Markets/Customers Ratio Driven Accounts Receivable New Value Propositions E
Slide 11: Growth: Creating Value
Growth 11 CREATING VALUE Operational Excellence initiatives to drive 3-5 2 Making Value Added points of margin Strategic Acquisitions improvement 25% 3 50% 25% Growing the Core 1 4-5 points Acquisition Margins Increase Core Growth At a Glance Market Position Growth Profitability Financial Outlook Gr
Slide 12: Growth: Acquisitions as Accelerators
Growth 12 ACQUISITIONS AS “ACCELERATORS” Wealth Generation Market Size Relative Profitability Value Chain & Pain Points Enhance Existing Unique Value Proposition Product Lines Brand Equity Strategic Patented Products/Services Expand Geographic #1 or #2 Share Footprint Ability to Defend Leadership Ad
Slide 13: Growing Shareholder Value
Growing Shareholder Value 13 SIGNIFICANT UPSIDE FOR INCREASING FUTURE SHARE HOLDER RETURNS • Resource Allocation – focus on Capital, Expense & High Performers/Potentials on key platforms. • Hurdle Rate – min. level of return for various investment projects. Ensure achievement of high standard for ac
Slide 14: Top-line Results
Top-line Results 14 SUSTAINING GROWTH Total Revenue $853 – $828 $832 $860 $790 $767 In Millions $639 $637 2014E 2013 LTM June 2014 2011 2012 2009 2010 At a Glance Market Position Growth Profitability Financial Financial Outlook Improvement Performance Performance
Slide 15: Bottom-line Results
Bottom-line Results 15 PROACTIVE RESTRUCTURING, COST & GROWTH INITIATIVES Adjusted EBITDA $80 $78 $72 $75 $69 In Millions $54 $40 10% 10% 9% 8% 8% 8% 6% LTM June 2014E 2012 2013 2010 2011 2014 2009 Margin •All amounts reported represent continuing operations before special charges. See non-GAAP reco
Slide 16: Cash Flow Remains Strong
Cash Flow Remains Strong 16 SOLID CASH EARNINGS $65M $60M $60M $55M $50-55M $50M $45M $45M 5% $50M $40M $39M $35M 5% $30M $28-33M 3%-4% $25M $20M FY 2014E FY 2013 FY 2012 Cash Flow from Operations Free Cash Flow is sum of Cash Flow from Operations less capital expenditures; as % of Sales. (2014 and
Slide 17: Low Leverage and Strong Liquidity
Low Leverage and Strong Liquidity 17 LIQUIDITY NEARING 3x EBITDA Liquidity Leverage Leverage Net Leverage ABL Cash 5.2X $206 $200 $118 3.7X $170 $165 3.1X $103 2.8X 2.6X 2.7X $147 $117 2.0X 2.0X 1.8X $116 1.5X $86 $88 $97 2013 06/30/14 $61 2011 2012 $54 $48 2010 2013 06/30/14 2011 2012 In millions 2
Slide 18: 2014 Financial Guidance
2014 Financial Guidance 18 WEAKER MARKET CONDITIONS & COST INFLATION 2013 2014E Assumptions Revenues $828M +3% to +4% Residential: Postal products growth offsets choppy R&R markets. Industrial & Infrastructure: Modest growth in Q2. 2H equivalent to 2H13. Segment Income $69M $55M-58M RM cost inflatio
Slide 19: Pro Forma Target Model
Pro Forma Target Model 19 APPLY NEW LEADER’S METHODOLOGIES ($ in millions) 2008 2009 2010 2011 2012 2013 2014E Target Revenues $917 $639 $637 $767 $790 $828 $853 - $858 $1,000 Adj. Operating 7% 4% 2% 6% 6% 6% 6% - 7% 9% Margin Adj. EBITDA 11% 8% 6% 10% 10% 9% 10% 12% Margin Adj. EPS $0.92 $0.12 ($0.
Slide 20: Key Investment Factors
Key Investment Factors 20 LEVERAGED TO END-MARKET RECOVERY • Leading share in growing markets • Residential momentum is choppy • Industrial growth gradually improving • Secular growth in postal products • Low leverage; strong liquidity • Focus on returns-based organic & acquisition- driven growth
Slide 21: Appendix
21 APPENDIX
Slide 22: Consolidated Results
Consolidated Results 22 UNEVEN MARKET CONDITIONS 1H 1H 2Q14 2Q13 2014 2013 Revenues $235.0 $224.5 $426.0 $421.3 • Postal products volume led the gains; Revenues modest volume gains to industrial +5% +1% markets • Partially offset by volume decreases to roofing-related Rez and transportation Adjusted
Slide 23: EBITDA Reconciliation
23 EBITDA Reconciliation (unaudited) / (in thousands) 2009 2010 2011 2012 2013 TTM 6/30/14 2014E Net income (loss) $ (52,025) $ (91,068) $ 16,523 $ 12,645 $ (5,633) $ (5,373) $ 15,700 (Income) loss from discontinued Operations, net of taxes 12,453 15,712 (7,307) 5 (4) - - Income (loss) from continui
Slide 24: 1H 2014 Non-GAAP Reconciliation
24 1H 2014 Non-GAAP Reconciliation (unaudited) / (in thousands) Six Months Ended June 30, 2014 As Reported in Adjusted GAAP Acquisition Restructuring Statement of Statements Related Costs Costs Operations Income from operations Residential Products $ 13,182 $ 206 $ 145 $ 13,533 Industrial & Infrastr
Slide 25: 2013 Non-GAAP Reconciliation
25 2013 Non-GAAP Reconciliation (unaudited) / (in thousands) Twelve Months Ended December 31, 2013 Acquisition As Reported Related and Intangible Deferred Tax Adjusted in GAAP Restructuring Asset Note Valuation Statement of Statements Costs Impairment Refinancing Allowance Operations Income from ope
Slide 26: 1H 2013 Non-GAAP Reconciliation
26 1H 2013 Non-GAAP Reconciliation (unaudited) / (in thousands) Six Months Ended June 30, 2013 As Reported in Adjusted GAAP Acquisition Restructuring Note Statement of Statements Related Costs Costs Refinancing Operations Income from operations Residential Products $ 19,857 $ - $ 710 $ - $ 20,567 In
Slide 27: 2012 Non-GAAP Reconciliation
27 2012 Non-GAAP Reconciliation (unaudited) / (in thousands) Twelve Months Ended December 31, 2012 As Reported Acquisition Intangible Adjusted in GAAP Related Restructuring Asset Statement of Statements Costs Costs Impairment Operations Income from operations Residential Products $ 23,902 $ - $ 2,45
Slide 28: 2011 Non-GAAP Reconciliation
28 2011 Non-GAAP Reconciliation (unaudited) / (in thousands) Twelve Months Ended December 31, 2011 As Reported Adjusted in GAAP Acquisition Surrendered Restructuring Statement of Statements Related Costs Compensation Costs Operations Net Sales $ 766,607 $ - $ - $ - $ 766,607 Cost of Sales 621,492 (2
Slide 29: 2010 Non-GAAP Reconciliation
29 2010 Non-GAAP Reconciliation (unaudited) / (in thousands) Twelve Months Ended December 31, 2010 Intangible As Reported Asset Ineffective Deferred Tax in GAAP Impairment Interest Rate Restructuring Valuation Adjusted Statements Adjustment Swap Costs Allowance Earnings Net Sales $ 637,454 $ - $ - $
Slide 30: 2009 Non-GAAP Reconciliation
30 2009 Non-GAAP Reconciliation (unaudited) / (in thousands) Twelve Months Ended December 31, 2009 As Reported Intangible Deferred in GAAP Asset Financing Restructuring Adjusted Statements Impairment Costs Costs Earnings Net Sales $ 639,076 $ - $ - $ - $ 639,076 Cost of Sales 519,348 - - (1,705) 517
Slide 31: Gross & Net Leverage Reconciliation
31 Gross & Net Leverage Reconciliation (unaudited) / (in thousands) TTM June 30, 2010 2011 2012 2013 2014 Adjusted EBITDA $ 39,763 $ 75,021 $ 79,573 $ 77,843 $ 69,019 Debt 207,197 207,163 207,803 214,007 213,600 Gross Leverage 5.2X 2.8X 2.6X 2.7X 3.1X Less cash (60,866) (54,117) (48,028) (97,039) (8
Slide 32: ROIC Reconciliation
32 ROIC Reconciliation (unaudited) / (in thousands) 2008 2009 2010 2011 2012 2013 2014E Adjusted (Loss) Income from Continuing Operations $ 27,837 $ 3,600 $ (4,049) $ 15,314 $ 20,194 $ 21,374 $ 15,800 Interest Expense 23,820 20,009 18,290 19,363 18,582 15,323 14,800 Adjusted Effective Tax Rate 37.5%
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